Which of the Following Statement(s)in Regard to Goodwill Is/are Correct

question 13

Multiple Choice

Which of the following statement(s) in regard to goodwill is/are correct in accordance with IAS 36 Impairment of Assets?

• A)An impairment loss must be recognised when the carrying amount of a cash-generating unit exceeds its recoverable amount.
• B)An impairment loss recognised for goodwill shall not be reversed in a subsequent period.
• C)Value in use is the present value of future cash flows expected to be derived from a cash-generating unit.
• D)All of the given statements are correct.

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Definitions:

Investing Activities

Transactions involving the purchase and sale of long-term assets and investments, as reported in a company's cash flow statement.

Comparative Balance Sheet

A financial statement that presents the financial position of a business at two or more different points in time, allowing for trend analysis.

Cash Dividend

A distribution of a portion of a company's earnings, decided by the board of directors, to a class of its shareholders in the form of cash.

Investing Activities

Transactions that involve the purchase or sale of long-term assets and other investments, typically reported on a company's cash flow statement.